Long days, intense negotiations result in $40 B pledge for child welfare reform, compensation

Six weeks of intense negotiations have moved the federal government to commit $40 billion to improve the child welfare system and the lives of First Nations children and their families wronged by it.

The figure was officially noted by Finance Minister and Deputy Premier Chrystia Freeland when the Liberal government released its 2021 economic and fiscal update on Dec. 14.

“The Government of Canada is working towards an agreement with the parties on this issue. We know that paying our historic debt to Indigenous peoples is paramount, and that we must act to ensure these injustices do not happen again. We will not – and we cannot – evade this essential commitment. That is why we are today setting aside the funds to pay for it,” said Freeland in her speech.

Manitoba Regional Chief Cindy Woodhouse, who is lead negotiator on the file for the Assembly of First Nations, admits it’s been long days and she’s tired.

She is the portfolio holder for child welfare for the AFN, which was party to the action that resulted in the Canadian Human Rights Tribunal’s 2016 decision that Canada had discriminated against First Nations children in delivering child welfare services. The tribunal (CHRT) ordered the federal government to pay up to $40,000 to each child unnecessarily placed in foster care.

Woodhouse says she has told her own two boys, ages eight and 10, that she’s “fighting for those kids like the age of my boys” to ensure that parents and children can stay together.

“How tired are they? They’ve been waiting and waiting for a changed system. I think of those families, a mother wanting her children home and she doesn’t have them. That would tear me apart and it’s such a broken system. Yeah, I’m tired, but I can’t imagine how tired those families are,” said Woodhouse.

Tired, but optimistic, she says about the $40 billion commitment. Woodhouse, however, would not say how that figure was determined, only that the government was “working with us to keep pushing to get where we need to be.”

“It’s a big number, but it’s a big issue,” she said.

Compensation dates back to children removed from their homes since 1991. Often children were—and still are—removed because of poverty, poor housing or because their medical needs could not be met on-reserve.

“The magnitude of the proposed compensation package is a testament to how many of our children were ripped from their families and communities,” said AFN National Chief RoseAnne Archibald in a statement.

In the financial update, Freeland stated the $40 billion pot would be “provisioned $20 billion for compensation and $20 billion to improve the system going forward.”

Changing the system must be led by First Nations, said Woodhouse.

“First Nations have the solutions within their own communities on how they want to see changes. We’ve all been affected by it and our people have solutions. It’ll vary by each community, each region, each cultural group, each language group. They need to be given that chance to take control of their own system of governance and this is one part,” she said.

How the money will roll out and how communities will access those funds has yet to be determined, said Woodhouse.

“That’s still under negotiations. I can’t comment on that at this time. Hopefully, very soon,” she said.

Murray Sinclair, former chair of the Truth and Reconciliation Commission on the legacy of Indian residential schools, has been facilitating the ongoing negotiations since Oct. 29 between the federal government and the AFN, First Nations Child and Family Caring Society, Chiefs of Ontario, Nishnawbe Aski Nation, and Moushoom/Trout.

Moushoom/Trout are representative plaintiffs in class-action lawsuits that allege discriminatory underfunding of the First Nation child welfare system on reserves and in the Yukon.

The discussions are meant to reach “a global resolution to address outstanding litigation related to compensation and long-term reform of First Nations Child and Family Services and Jordan's Principle,” said ministers Patty Hajdu (Indigenous Services) and Marc Miller (Crown-Indigenous Relations) in a joint statement Dec. 13.

Jordan's Principle ensures that First Nations children can access the products, services and supports they need, when they need them, without having to wait for the determination of which jurisdiction is fiscally responsible.

Hajdu’s and Miller’s statement pre-empted Freeland’s announcement of the $40 billion “to provide compensation and to commit the funds necessary to implement long-term reform so that future generations of First Nations children will never face the same systemic tragedies.”

The ministers added they expected to “provide further details on the outcomes” of the negotiations by Dec. 31. That is the date set for reaching an agreement in principle.

Woodhouse said she is optimistic that a Dec. 31 deadline can be reached.

“I feel confident that our people are working really hard to get to that agreement. Our chiefs are working really hard to get to this agreement,” she said. “Everybody’s trying their best every single day to negotiate very well and there’s been a lot of movement in the past six weeks and I’m thankful for that. Of course, negotiations aren’t always easy, but I’m at the negotiating table every day and we’re working through everything.”

Woodhouse said she is confident these changes to the child welfare, health and education systems will make a difference in the lives of families.

“I believe First Nations want to make positive changes and they will always be in the best interest of their children,” she said.

“Money does not mean justice. However, it signals that we are on the healing path forward as we finalize long-term reform to ensure we meet our vision of children surrounded by the love and care of their families living in safe and vibrant communities,” said Archibald.

Numerous First Nations organizations across the country have added their voices of support of the federal government’s $40 billion commitment, but have also cautioned that the work is not done.

“This is not the end of the road. We still have a long way to go before a smooth path can be walked upon,” said Deputy Grand Chief Stacia Loft of the Association of Iroquois and Allied Indians.

“However, this settlement marks another step in mending the relationship between Indigenous peoples and Canada. Compensation is but one of many steps to justice. We need to ensure that this dark history is acknowledged, and that concentrated efforts to address systemic issues that led to this injustice are also part o the solution.”

Local Journalism Initiative Reporters are supported by a financial contribution made by the Government of Canada.